Farmer Mac Continues to Post Profits but There Are Questions on GAAP Results

Farmer Mac posted core earnings of $5.4 million in the first quarter, a slight improvement from the same period last year. However, GAAP earnings fell to $1.8 million for the first quarter versus $33.5 million in the year ago time frame. Then again, last year the firm recorded $33.3 million of gains as a result of increases in the fair value of derivatives and trading assets. Farmer Mac had 90-day delinquencies of $70.4 million at March 31, down from $86.2 million a year ago but a $49.5 million gain from yearend. The firm blamed the cyclical nature of payments by producers for the increase in the quarter. It said there are certain segments in the agricultural sector - particularly dairy - that are showing stress and these industries will continue to experience challenges in 2010.